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    Chapter 6 - Strategic Implementation

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    1. Strategy implementation is the process of putting strategic plans into action through programs, budgets, procedures, and resource allocation. 2. Key aspects of strategy implementation include developing action plans, budgets, and procedures to operationalize strategies, as well as aligning organizational structure, staffing, leadership, and culture to support the strategic direction. 3. Successful strategy implementation requires coordination across the organization and addressing potential challenges like unanticipated problems, ineffective coordination of activities, and crises that divert attention.

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    Chapter 6 - Strategic Implementation

    Uploaded by

    Tú Ân
    60 views14 pages
    1. Strategy implementation is the process of putting strategic plans into action through programs, budgets, procedures, and resource allocation. 2. Key aspects of strategy implementation include developing action plans, budgets, and procedures to operationalize strategies, as well as aligning organizational structure, staffing, leadership, and culture to support the strategic direction. 3. Successful strategy implementation requires coordination across the organization and addressing potential challenges like unanticipated problems, ineffective coordination of activities, and crises that divert attention.

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    1. Strategy implementation is the process of putting strategic plans into action through programs, budgets, procedures, and resource allocation. 2. Key aspects of strategy implementation include developing action plans, budgets, and procedures to operationalize strategies, as well as aligning organizational structure, staffing, leadership, and culture to support the strategic direction. 3. Successful strategy implementation requires coordination across the organization and addressing potential challenges like unanticipated problems, ineffective coordination of activities, and crises that divert attention.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    60 views14 pages

    Chapter 6 - Strategic Implementation

    Uploaded by

    Tú Ân
    1. Strategy implementation is the process of putting strategic plans into action through programs, budgets, procedures, and resource allocation. 2. Key aspects of strategy implementation include developing action plans, budgets, and procedures to operationalize strategies, as well as aligning organizational structure, staffing, leadership, and culture to support the strategic direction. 3. Successful strategy implementation requires coordination across the organization and addressing potential challenges like unanticipated problems, ineffective coordination of activities, and crises that divert attention.

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    © All Rights Reserved
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    of 14

    STRATEGY

    IMPLEMENTATION

    1
    Strategic Management Model

    Environmental Strategy Strategy Evaluation


    Scanning Formulation Implementation and Control
    Mission
    External
    Reason for
    Societal
    existence
    Environment Objectives
    General Forces
    What results
    to
    Task Strategies
    accomplish
    Environment
    by when Plan to
    Industry Analysis
    achieve the
    Policies
    mission &
    Internal objectives Broad
    guidelines for Programs
    Structure decision Process
    Chain of Command making Activities to monitor
    needed to performance
    Culture Budgets and take
    accomplish
    Beliefs, Expectations, a plan corrective
    Cost of the
    Values action
    programs
    Procedures
    Resources
    Sequence
    Assets, Skills
    of steps
    Competencies,
    needed to
    Knowledge do the job Performance

    Feedback/Learning
    2
    Strategy Implementation

    Strategy Execution

    “In too many companies there is a grand, and overly vague, long-term goal on
    one hand…and detailed short-term budgets and annual plans on the other
    hand … with nothing in between to link the two together
    … the long term doesn’t start at year five of the current
    strategic plan. It starts right now!”

    Competing for the Future by Gary Hamel and C.K. Prahalad (Harvard Business Press)
    3
    Characteristics of well-performing organisations

    Fluctuating = Good performance =


    Strong vision + Strong vision +
    Weak Strong
    implementation implementation

    Vision
    Going nowhere = Conservative = Excellent
    Weak vision + Weak vision + performance
    Weak Strong management
    implementation implementation

    Implementation
    4
    Scenario planning

    scenario 1 scenario 2 scenario n

    result 1

    result 2

    result n

    MISSION + CONSEQUENCES
    STRATEGY
    5
    Strategy Implementation

     Strategy implementation is the total activities and choices required


    for the execution of a strategic plan. It is the process by which
    strategies and policies are put into action through programs,
    budgets, and procedures.

     Implementation Process Questions:


    – Who are the people to carry out the strategic plan?
    – What must be done to align operations with new direction?
    – How is work going to be coordinated?

    6
    Problems in Implementing Strategic plans

     More time than planned


     Unanticipated problems
     Activities ineffectively coordinated
     Crises deferred attention away
     Employees w/o capabilities
     Inadequate employee training
     Uncontrollable external factors
     Inadequate leadership
     Poorly defined tasks
     Inadequate information systems
    7
    What must be done?

    Developing programs, Budget, and Procedure.

     Programs: The Purpose of a program to make strategy action oriented.


    Compare proposed programs and activities with current programs and activities.

     Budgets: After programs has been developed, the budget process begins.
    Planning a budget is the last real check a firm has on the feasibility of the
    selected strategy.

     Procedures: Standard operating procedures are developed after approving


    budget. They typically detailed the various activities that must be carried out to
    complete the corporation's programs.

     Achieving Synergy:

    8
    Action Plan
    States what actions are going to be taken, by whom, during
    what time frame, and with what expected results.

    Action Plan Elements


    • List specific actions.
    • List dates to begin and end each action.
    • Name person responsible for each action.
    • Name person responsible for monitoring timelines and
    effectiveness of each action.
    • Estimate expected financial and physical consequences
    of each action.
    • Develop contingency plans.
    9
    Management By Objectives (MBO)
    Organizational approach to help ensure purposeful action
    towards desired objectives.

    The MBO process involves:


    1. Establishing and communicating organizational objectives
    2. Setting individual objectives that help implementing
    organizational one
    3. Developing an action plan of activities needed to achieve
    the objectives
    4. Periodically reviewing the performance as it relates to the
    objectives and including the results in the annual
    performance appraisal.
    10
    Structure Follows Strategy
    Successful corporations tend to follow a pattern of structural development
    as they grow and expand. The structure development is as follow:

    • Stage I : Simple Structure; Little formal structure.

    • Stage II : Functional Structure; A single-product firm or a single


    dominant businesses firm should employ a functional structure.

    • Stage III: Divisional Structure; A firm in a several lines of business


    that somehow related to should employ a multi divisional structure.

    • Stage IV: Beyond SBU’s :A firm in several unrelated lines of business


    should be organized into strategic business unit
    11
    Organizational Life Cycle

     The organizational life cycle describes how organizations grow,


    develop, and eventually decline. It is the organizational equivalent to
    the product life cycle in marketing. These stages are:

    12
    Staffing and Directing
    The implementation of new strategies and policies often call for new human
    resource management priorities and different use of personnel.
    Same as structure, staffing requirements are likely to follow a change in strategy.

    Hiring and Training Requirements Change


    • Human resources needed to support the strategy
    • Selection process and procedure
    • Training is also needed in implementing strategies like retrenchment

    Matching the Manager to the strategy


    • Depending on strategy direction of the firm
     Executive type; Executives with a particular mix of skills and experiences
    • Analytical portfolio manager (Growth—Diversification))
    • Caution profit planner (Stability)
    • Turnaround specialist (Retrenchment—Save Company)
    • Professional Liquidator (Retrenchment—Close Company)
    13
    Organizational Leadership & Culture
     Leading people to use their abilities and skills most effectively and efficiently to
    achieve organizational objectives.

     Corporate culture
    Like structure and staffing, corporate culture should support the strategy
    • Affects firm’s ability to shift its strategic direction
    • Strong tendency to resist change
    • Corporate culture should support the strategy

     Strategy-Culture Compatibility: Consider the following:


    • Is the planned strategy compatible with the firm’s current culture?
    • Can the culture be easily modified to make it more compatible with new
    strategy?
    • Is management willing to make major organizational changes?
    • Is management committed to implementing the strategy?

    14

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